CapitaMalls Asia: Green in a sea of red.

The positive divergence observed in the weekly chart many times before could be playing out. Today, price rose strongly on the back of higher volume as a long wickless white candle was formed. Price was $1.60 at the open and $1.69 at the close.

Positive divergence between declining price and the MFI is quite obvious on the daily chart now. Price would likely continue higher in the next session with immediate resistance provided by the declining 20dMA at $1.73.

If the bulls are very strong, we could see $1.83, a formerly strong support tested as resistance this time round. $1.83 is also where the declining 50dMA is approximating.

Related post:
CapitaMalls Asia: Japanese properties are safe.

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SPH: Time to utilise my CPF OA?

As a rule, I am very careful with my CPF money and first utilised the money in my CPF OA during the global financial crisis some two years ago. I used the money almost exclusively for the purchase of shares in SPH which is my favourite blue chip for its high yield.

I have divested all the shares bought using the money in my CPF OA as the market ran up last year. So, for some time now, my CPF OA has been 100% cash waiting for another opportunity to buy shares of strong blue chip companies again. Of course, I am keeping an eye on SPH.

SPH's share price has been retreating and in the last three sessions, trading volume was rather high. Technically, it looks very weak as the MACD completed a bearish crossover with the signal line in negative territory and the 20dMA completed a bearish crossover with the 200dMA.

If we look at the weekly chart, the longer term 100wMA has turned up some time back and is rising nicely. With price action having broken the support provided by the 50wMA, I would look to the 100wMA for support. For now, I like $3.60 as that is where we find the 161.8% golden ratio as well as the rising 100wMA.

It seems that the time to use my CPF OA to buy some shares of SPH could be drawing near.

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